At an August 11 event, Sen. George Allen (R-VA) ridiculed a South Asian-American man who worked for his political opponent. In front of a large audience, Allen called S.R. Sidarth “macaca” (a racial slur), and said to Sidarth, who was born and raised in Virginia, “Welcome to America and the real world of Virginia!”

CAVUTO: And I’m wondering — and I know you have addressed this — if it goes back to your offensive comments to an opponent’s campaign worker that were deemed racist. Is — is that why you’re dropping? Is it a concern?

ALLEN: Oh, heck, I have been behind in polls. I was running for governor. I was 31 percent behind.

What matters to the people of Virginia is a record of performance, knowing Virginia, and somebody who’s going to lead with the values that are shared by Virginians, as well as their vision. And, for the last 20 years, I have been working for Virginians, making our commonwealth a — a safer and more prosperous place for people to live, learn, work, and to raise their families.

That remark I made was a mistake. I have apologized for it. But people care — only the media asks about it. The people care about high gas prices. They care about security, winning this war on terrorism, making sure that smaller businesses have access to more affordable health plans…

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